Before you sign your name to a solar panel lease on your house in San Diego CA 92106 you need to comprehend what you are actually getting into. If you’re in the business of selling solar leases possibly you must try Googling this, “benefits of solar lease” Read all of the page one results and see exactly what your consumer’s are reading if they do even a percentage of homework. You likewise may attempt Googling, “selling home with solar lease” and “solar lease vs. buy”. Read exactly what your customer’s will certainly read when they do 30 minutes of research online before dedicating to a 20 year agreement. Possibly you’ll now comprehend why you get many cancellations and why if you do not close the deal on the first appointment you’ve got virtually no chance of closing it later on. Why not change your strategy do exactly what’s right for the consumer and get on board with a business that offers industry leading value (cost + quality + service).
The Solar Lease in San Diego CA 92106 or PPA Sales Pitch normally includes six bottom lines. We went over each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year contract in which you promise to pay X hundred dollars per month is barely paying nothing. If you build up all those regular monthly payments during the term of the agreement you’ll be paying 2 to 3 times exactly what you would have paid purchasing the solar system even if you factor in the interest paid on the solar loan. Numerous absolutely no cash down solar loans are offered. If you have the credit history to get the lease you can make use of the bank’s cash to finance your solar system with absolutely no cash down.
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2. No concerns. The leasing/PPA business in San Diego CA 92106 is accountable for all maintenance and repairs on the system.
The renting company will not clean your solar panels which has to do with just maintenance required on a solar system. Solar systems are extremely low maintenance with no moving parts and have incredibly long producer’s warranties and efficiency assurances. 25 years with a microinverter based system, that’s longer than the leasing business’ warranty. The majority of tier 1 solar devices manufacturers are bigger and more financially stable than the solar leasing company by lots of multiples. Those long warranties are backed up by a 20 year bumper to bumper guarantee from Solar Symphony.
3. Insurance coverage– go solar with a lease and the renting business insures the system.
Purchase a system and the solar system is covered under your property owner’s policy for a just a couple dollars per month.
4. Monitoring– the leasing business monitors your system for the life of the lease/PPA.
When you purchase a system you also get keeping an eye on for the life of the system, making use of the same tracking devices used by the leasing company.
5. Simply sign a contract and the leasing company does everything else.
When purchasing a system you likewise simply sign an agreement and the solar professionals does everything else. Difference is the leasing business agreement is 17 pages (fine print) and the solar professional’s contract is 2 pages.
6. A lease does not hit your individual credit. Does not impact your debt to earnings ratio.
This might be the only real advantage of the lease however it comes at an awefully high price. If this is among your main concerns there are financing options for a purchase (PACE and HERO) that also don’t strike your individual credit or impact your debt to income ratio. And those programs enable practically any property owner to go solar regardless of their credit rating.
Now for the 6 main disadvantages to a solar lease in San Diego CA 92106 or PPA.
1. A lease is a 20 year liability. It is not an asset or an investment in solar. The solar leasing business are purchasing solar on your roofing! You’re just providing them a guaranteed 20 year capital!
2. Now you have 2 utility costs not just one! In essence the renting business becomes a 2nd utility. So, sign a solar lease and now you have 2 utility business you need to pay monthly.
3. Most leases or PPAs carry an annual cost escalator, usually 2.9 %. So while you might be saving money today in a numerous years you won’t be.
4. You won’t be able to assert the 30 % federal tax credit and any suitable money rebates. You also won’t have the ability to assert any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never ever get to free power with a lease or PPA. In contrast, if you acquire a solar system once the solar loan is settled you can take pleasure in totally free electrical energy from the sun for 10– 15 years depending on the length of the solar loan.
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6. Selling your home with a solar lease or PPA can be bothersome. Solar leases require the brand-new owner to presume the lease and terms. If you check out any of the above you can most likely see why an enlightened customer would not have an interest in assuming the responsibilities of your lease. This is particularly real if the lease is 7 or more years of ages and the yearly cost escalator in the lease has actually now raised the cost of electrical energy to equal or more than the expense of electricity from the utility.